Nu (NU) Q4 2025 earnings summary

Executive summary

• Ended 2025 with 131 million customers, adding 17 million net new customers and maintaining an 83% activity rate, with strong leadership in Brazil, Mexico, and Colombia.

• Q4 2025 revenues reached $4.9 billion, up 45% year-over-year, with ARPAC at $15, up 27% year-over-year.

• Net income for Q4 was $895 million, a 50% year-over-year increase, with a record 33% ROE.

• Over 100 new products and features launched in 2025, including payroll loans, SME credit, and AI-driven tools.

• Strategic priorities for 2026 include deepening core LatAm market leadership, scaling globally (starting with the US), and accelerating AI adoption.

Financial highlights

• Gross profit for Q4 2025 was $1.96 billion, up 38% year-over-year; FY'25 gross profit reached $6.6 billion.

• Total credit portfolio reached $32.7 billion, up 40% year-over-year, led by credit cards and unsecured lending.

• Deposits totaled $41.9 billion, up 29% year-over-year, supporting a scalable and sustainable franchise.

• Net interest income rose 13% quarter-over-quarter; risk-adjusted NIM at 10.5%, stable throughout 2025.

• Efficiency ratio improved to 19.9% in Q4 2025, reflecting continued operating leverage.

Outlook and guidance

• 2026 is positioned as an investment and inflection year, focusing on deepening leadership in core markets, laying groundwork for U.S. expansion, and accelerating AI adoption.

• Expect near-term upward pressure on efficiency ratio due to investments in return-to-office, AI, and global expansion, but medium-term improvement anticipated.

• Continued focus on credit growth, customer experience, and monetization across Brazil, Mexico, and Colombia.